Method
Reading a trading signal before you follow it
A signal fits in a few lines: a market, a direction, an entry price, a stop and a target. What matters is what those lines say about the risk you agree to take.
Tag
#Risk
Risk management
The stop loss, your first line of defence
A stop loss is an order that closes your position when the price reaches a level set in advance. It turns a possible loss into a known one.
Risk management
Position sizing: the 1% rule
The rule is simple: never risk more than 1% of your capital on a single position. With €5,000, the most a trade can lose is €50.